Westbridge Energy Corp., Vancouver (Toronto Venture: WEB), closed on its previously announced acquisition of Kayuco Universal Ltd., a privately-held company whose main asset is an 80% interest in offshore Namibia.
Under the terms of the transaction, Westbridge acquired on the closing date all of the issued and outstanding common shares of Kayuco in exchange for 10 million common shares in the capital of the Company at a deemed issue price of C$.20 per share and a cash payment of US$3 million to Kayuco's selling shareholders in proportion to their shareholding in Kayuco.
A finder's fee in the amount of 1,000,000 common shares of the Company was issued to Westward Energy LLC.
As a condition to the completion of the acquisition, Westbridge completed a non-brokered private placement financing of subscription receipts for gross proceeds of C$4,000,000 at a price of C$0.25 per subscription receipt. Each subscription receipt is exchangeable into one unit of Westbridge comprising one common share in the company and one-half of one common share purchase warrant.
Each whole warrant will entitle the holder to acquire one share for at a price of C$0.45 for 18 months from the closing date of the deal. The 16,000,000 common shares issued upon conversion of the subscription receipts are subject to a hold period expiring September 3, 2012.
Kayuco's primary asset is an 80% interest in an oil and gas petroleum exploration licence granted by the Ministry of Mines and Energy of the Republic of Namibia to explore within block number 1811B off-shore Namibia. Block 1811B is situated in the Namibe basin off the northern coast of Namibia along the international boundary with Angola.
Kayuco's interest in Block 1811B covers an area of approximately 1.4 million acres (5,854 square kilometres). The remaining 20% interest is a carried interest with certain back in rights held by NAMCOR (the Namibian state oil company) and Lunganda Trading Enterprise (Namibian economic empowerment group).
Cody Lee, Westbridge's President, says, "1811B gives us a stake in the highly prospective Namibian offshore play that is geologically analogous to both Brazilian discoveries by Petrobras and Statoil and Angolan discoveries by Cobalt. Moreover, the timing and speed of this deal's completion demonstrates Westbridge's capability to execute on its strategy to aggregate prospective opportunities in the growing African emerging resource."
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